All Forum Posts by: Tom Scott

@Alina Trigub ALF (assisted living facility) is just a product type offered within the senior's housing space.  The major product types are IL (independent living), AL (assisted living), MC (memory care), and SN (skilled nursing).  Making a community 55+ restricted is a restriction that is placed on the deed and/or by a LURA by taking low income housing tax credits.  Age is normally a protected class for housing but a 55+ age restriction is the minimum age where you can get around this.  

Usually traffic count studies can be found from the county the property is located in for example, here is Sonoma County's traffic count data:

http://sonomacounty.ca.gov/TPW/Roads/Services/Data-and-Resources/Interactive-Maps/Traffic-Surveys/

@Chris Purcell I'm confused.  I said private regarding lenders for student loans which are not guaranteed versus student loans which are guaranteed by the government.  Student loans were not a major contributing factor to the 2008 crisis 

@Chris Purcell it all depends on the waterfall and structure of the ABS and then whether or not the underlying is government guaranteed student loans or private student loans but when a student stops paying a loan the money comes from an interest reserve account.  When the interest reserve account runs dry someone doesn't get paid.  

They're probably sending you that agreement because they don't have an exclusive agreement with the seller given they're apparently off market properties. Either way that upfront fee is ridiculous and I would walk. Like Joel Owens said they should at most get you to provide proof of funds and sign a confidentiality agreement

Congrats on the number of calls! That's true hustle right there and with that kind of volume you'll eventually find something that sticks. So up until a few weeks ago I worked in a brokerage that targeted small balance owners (think like 5+ units, $500k-$10M). As people above have said, most of these guys don't want to sell unless they know the next move already. Some want to 1031 into the next property, some want continuing current income for the next 30 years but all of them need a reason to sell. The pitch I've heard most often recently is that cap rates are at historical lows so they can get historically high valuations. This got the brokers in the door to do a broker opinion of value and continue the relationship. Most of these owners know they can get maximum value so unless you're finding a distressed owner, you'll probably have to pay what the market calls for which will definitely seem high. Maybe ask if they've had a broker opinion of value done on their property as they may be anchoring their judgement against this number which may or may not be valid if they had it done six months ago before treasuries rose

What property type is this, retail or industrial?  

You mentioned using a 30-year loan.  What's the issue with simply a 24-36 month construction loan then a refi to a permanent 10-year, 30-year amortizing permanent loan?    

Have you introduced the buyer and the seller yet?  If not, try to get an engagement agreement signed with the seller in the position of acting as a mortgage broker, depending on your state's rules and regulations.  It's owner financing but there may be still some way for you to get in the middle of the transaction and collect a financing fee.  I think that's your only out and I'm making an assumption here but I'm guessing you're not a sales broker so you can't get the fee for selling the property.  

CBRE is always a good choice - +1 330 6704444

Wow Mark J. You sound like a broker with that deep of knowledge